Binance Reduces Worker Benefits, Citing ‘Decline In Profit’

Jul. 18, 2023
Binance Reduces Worker Benefits, Citing ‘Decline In Profit’

Binance has cut off employee benefits since June 19, WSJ reported on July 17. The exchange said it is making changes because its profits have gone down. However, employees would no longer get fitness reimbursement, mobile phone reimbursement, and other bonuses.

The crypto firm said current market conditions are not favorable for it. However, it should be more careful about its spending. Partner at Cinneamhain Ventures, Adam Cochran, shared an email from Binance. The firm highlighted its cost-cutting measures in the email.

This new report comes following Binance’s firing of over 1,000 workers. Many seniors in the company also left their positions. Before the playoffs began, the exchange stated it had about 8,000 employees globally. 

The exchange is facing legal action in the world’s several regions. The US SEC filed a lawsuit against Binance for violating securities laws in June 2023. All these indicate that the company is in difficult times. Binance has a strong effect on the crypto space. However, interested parties can expect it to overcome challenges.

Additionally, Changpeng Zhao, Binance CEO, informed employees that the firm may lay off more staff every three to six months. Meanwhile, it is totally opposed to his previous announcements. CZ tweeted on July 14 that firm was still hiring. Further, he said the company “continuously struggles to boost talent density.” 

Changpeng Zhao Says Binance Is Working Well

During Friday’s company meeting, Zhao told the staff that the platform had generated a profit. He also noted that the SEC lawsuit had no effect, as reported by meeting participants.

A spokesman stated:

“The company is looking at certain products, business units, staff benefits, and policies to ensure our resources are allocated properly to reflect the evolving demands of users and regulators.”

Moreover, the company has announced the successful integration of BTC over the LN. Users can now deposit and withdraw BTC with this advanced technology. The network enables cheaper, faster, and highly scalable transactions of Bitcoins. The legal actions of authorities against the company have dropped the firm’s financial performance. Binance said it intends to protect its platform from useless allegations and continue to operate.

Many crypto platforms, including FTX, have experienced failure over the years and reduced their services. Notably, Binance kept hiring new talent during the crypto winter. Moreoever, Binance Academy has partnered with the learning platform Coursera. The platform programs are designed for two types of learners.

The first group includes individuals who want to learn the basics of crypto technologies. The second group consists of people who want to learn skills for success in the industry.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.